MINNEAPOLIS, March 17, 2005
- For every dollar the City of Minneapolis invested in the GMCVA
in 2004, it will receive $80 in future convention and tourism business.
In total, the GMCVA's sales efforts produced nearly 513,000 future room
nights for area hotels. This represents more than $522 million
in future economic impact for businesses throughout the Minneapolis
area.
While the Convention Sales department finished short of its target, the
entire organization booked 86 percent of its overall room night goal
and made a 21 percent improvement over 2003. Delayed meeting planner
decisions, a still-recovering market and a lack of a compressed
downtown hotel inventory played a part in missing the convention room
night goal.
"In fact, three major conventions that listed Minneapolis as a finalist
but ultimately selected another city, represented a total of 125,000
lost room nights," said Greg Ortale, GMCVA president and CEO.
In 2004, success in booking business was enhanced by getting potential
clients to experience Minneapolis.
"Once we get them here, they're sold," said Ortale. "The Minneapolis
product is superb. Meeting planners are blown away by the city - the
quality of Minneapolis' hotels and the state-of-the-art convention
center, along with a safe and vibrant downtown all convince them to
book their next convention here."
At no time was that more obvious than during GMCVA's key event: the
annual convention of the American Society of Association Executives
(ASAE) in August. The "Super Bowl of conventions" drew 5,500
attendees, the majority of whom are decision-makers who determine where
conventions are booked.
Nearly two-thirds of post-ASAE survey respondents said their experience
at ASAE significantly changed their impression of Minneapolis for the
better. Most respondents said that Minneapolis had changed dramatically since their last visit and that it exceeded their
expectations. Four out of five said they would come back to the city.
ASAE estimated that hosting the convention will generate $1.4 billion
in future meeting business for Minneapolis.
Sixty-six percent of past lost convention business (1999-2004) cited a
hotel inventory or availability issue as a reason for not selecting
Minneapolis. This was addressed in a hotel feasibility study conducted
by Chicago-based C.H. Johnson in 2004. Study results identified a
2,800-room deficit and overwhelmingly demonstrated the need for a new
1,200-room hotel in close proximity to the Minneapolis Convention
Center.
Small Group Business
Key to Success
Despite challenges, the Convention Sales department booked 276 future
conventions, and, for the first time, business in its meetings and
conferences division (groups requiring 750 hotel room nights or less)
represented the majority of bookings. This gave area hotels much-needed
short-term business and contributed to an increase in hotel occupancy
rate that outpaced the national average.
The GMCVA's Tourism & Group Sales department experienced a great
amount of success in 2004. Its wedding services program took off,
generating nearly 20 percent of its hotel room nights booked. Also
contributing to the record room night numbers was an increase in
European (particularly United Kingdom) travel packages and African
American reunion bookings.
Targeted and Niche
Marketing
In 2004, the GMCVA targeted its marketing efforts to specific
demographic groups and special interest areas. Its neighborhood
marketing initiatives focused on the Mississippi Riverfront District,
with a new website for the area. In addition, to support neighborhood
restaurants and bars during a transition to becoming smoke-free
establishments, the GMCVA was part of a committee that created a "Clean
Air Minneapolis" marketing campaign. It launches this week.
New targeted websites launched and re-built in 2004
-- minneapolis-kids.com (for family travel to
Minneapolis)
-- minneapolis-riverfront.com (highlighting
the riverfront as a destination)
-- minneapolis.org/spanish (geared toward
Spanish-speaking travelers)
-- minneapolis.org/french (focused on
international travelers from France)
-- glbtminneapolis.org (aimed at gay and
lesbian travelers)
To generate leisure tourism hotel bookings, the GMCVA began creating
travel packages. In 2004, it promoted and sold theater travel packages
online in Midwest markets. Enhanced search engine marketing also generated increased traffic to GMCVA-hosted websites. Through
better placement on search engines and targeted online advertising
efforts, the GMCVA increased unique website visitors by 33 percent over
2003.
GMCVA 2004 results
at-a-glance
- Secured 276 future conventions and meetings
with a total anticipated attendance of 490,196, hotel room nights of
459,356 and direct spending of $522.8 million
- Generated $5.9 million in rental revenue at
the Minneapolis Convention Center
- Hosted a total of 480 events at the
Minneapolis Convention Center
- Hosted 268 conventions in Minneapolis with
528,814 total delegates and direct spending of $326 million
- Booked a total of 53,389 leisure and group
tour hotel room nights, a 13 percent increase over 2003
- Booked 12,138 room nights from GMCVA's
wedding service, a 33 percent increase over 2003
- Handled 63,243 total tourism inquiries,
including 32,574 email inquiries - a 150 percent increase in emails
over 2003
- Generated a total of $461,972 in revenue
from its 700-plus members
- Generated 111,226,109 media impressions
though publicity efforts, with an advertising value of $5.1 million - a
20 percent and 42 percent increase over 2003, respectively
- Generated 1.1 million unique visitors to
GMCVA-hosted websites in 2004, a 33 percent increase over 2003